A bill to amend section 428(a) of the Higher Education Act of 1965, as amended, and section 2(a) (7) of the Emergency Insured Student Loan Act of 1969, to better assure that students will have reasonable access to loans to meet their postsecondary education costs.

(LATEST SUMMARY)

Provides that, in the issuance of student loans under the Higher Education Act, a need analysis will only be required in cases where students are from families with adjusted family incomes over $15,000 per year, or where the borrower seeks to borrow more than $1,500 in a given academic year.

Provides that lenders of such loans may take into account the prospective borrower's total financial situation, including that of his family, and may counsel him regarding a prospective loan.

Extends for one year the Secretary's authority to pay a special allowance of up to 3 percent beyond the seven per cent interest rate to lenders under the Emergency Insured Student Loan Fund Act.